Calculate time solve for t t lnAP ln1 r then also. 1152800 12n 144 12n 144 122 Thus it takes two years for the compound interest to amount to. Compound Interest P 1 rn nt P.
Alternative Compound Interest Formula The ending balance of an account with compound interest can be calculated based on the following formula.
The formula for compound interest is P 1 rn nt where P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods. Let us find out how much will be monthly compounded interest charged by the bank on loan provided. The value after 2 years will be 360639. The process has been simplified because of the equation that can easily help you in arriving at the result.